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OECD Digital Economy Outlook 2017 OECD Digital Economy Outlook 2017 The biennial OECD Digital Economy Outlook examines and documents evolutions and emerging opportunities and challenges in the digital economy. It highlights how OECD countries and partner economies are taking advantage of information and communication technologies (ICTs) and the Internet to meet their public policy objectives. Through comparative evidence, it informs policy makers of regulatory practices and policy options to help maximise the potential of the digital economy as a driver for innovation and inclusive growth. OECD Digital Economy Outlook 2017 OECD Digital Economy Outlook 2017 This publication is a contribution to the OECD Going Digital project which aims to provide policymakers with the tools they need to help their economies and societies prosper in an increasingly digital and data-driven world. For more information, visit www.oecd.org/going-digital Makin the transformation work #GoingDigital for rowth and well-bein Consult this publication on line at http://dx.doi.org/10.1787/9789264276284-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information. ISBN 978-92-64-27626-0 93 2017 01 1 P 9HSTCQE*chgcga+ OECD Digital Economy Outlook 2017 This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Please cite this publication as: OECD (2017), OECD Digital Economy Outlook 2017, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264276284-en ISBN 978-92-64-27626-0 (print) ISBN 978-92-64-27628-4 (PDF) ISBN 978-92-64-27629-1 (ePub) The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. Photo credits: Maro Haas. Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda. © OECD 2017 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of the source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected]. Foreword Foreword The biennial OECD Digital Economy Outlook examines and documents evolutions and emerging opportunities and challenges in the digital economy. It highlights how OECD countries and partner economies are taking advantage of information and communication technologies (ICTs) and the Internet to meet their public policy objectives. Through comparative evidence, it informs policy makers of regulatory practices and policy options to help maximise the potential of the digital economy as a driver for innovation and inclusive growth. This second edition of the OECD Digital Economy Outlook provides a holistic overview of converging trends, policy developments and data on both the supply and demand sides of the digital economy, and illustrates how the digital transformation is affecting economies and societies. The OECD Digital Economy Outlook 2017 has been prepared by the OECD Secretariat under the guidance of the OECD Committee on Digital Economy Policy (CDEP), chaired by Wonki Min (Korea). It has benefited from the input of delegates to the Committee and its Working Parties on Communications Infrastructure Services Policy (CISP), on Measurement and Analysis of the Digital Economy (MADE), and on Security and Privacy in the Digital Economy (SPDE). A large part of its content builds on the responses by OECD countries and partner economies to the 2016 OECD Digital Economy Outlook Policy Questionnaire. The OECD Digital Economy Outlook 2017 was prepared by the Division on Digital Economy Policy in the OECD Directorate for Science, Technology and Innovation. It was produced under the direction/co-ordination of David Gierten, with assistance by Cristina Serra Vallejo. Authors include, by alphabetical order, Laurent Bernat, Frederic Bourassa, Anne Carblanc, Lauren Crean, Michael Donohue, Marie-Lou Dupont, David Gierten, Gaël Hernandez, Bong Soo Keum, Elif Koksal-Oudot, Molly Lesher, Pierre Montagnier, Sam Paltridge, Karine Perset, Lorrayne Porciuncula, Giorgio Presidente, Christian Reimsbach-Kounatze, Elettra Ronchi, Carthage Smith, Cristina Serra Vallejo, Vincenzo Spiezia, Jan Tscheke, Verena Weber, Jeremy West and Yuki Yokoromi. External authors for chapter 7 are Primavera De Filippi, Cyrus Hodes and Nicolas Miailhe. Editorial work was undertaken by Jennifer Allain, Janine Treves, Angela Gosmann and by the OECD Public Affairs and Communications Directorate. Sarah Ferguson and María Castaño provided assistance with formatting. Finally, the data and assistance provided by Airbnb, Akamai, General Motors, Neftcraft, and Teligen, a division of Strategy Analytics Ltc., are gratefully acknowledged, as is the assistance of other colleagues in the OECD who have provided data for the analysis. The OECD Digital Economy Outlook 2017 has been declassified by the OECD Committee on Digital Economy Policy (CDEP) on 27 July 2017 by written procedure and prepared for publication by the OECD Secretariat. OECD DigitaL ECONOMY OUTLOOK 2017 © OECD 2017 3 TABLE OF CONTENTS Table of contents Executive summary . 11 List of acronyms, abbreviations and units of measure . 15 Part I Policies Chapter 1. Going digital . 21 The digital transformation is high on the global agenda . 22 The digital transformation of the economy and society . 24 Key policy and measurement building blocks for the digital transformation . 27 The current state of national digital strategies. 34 Note . 38 References . 38 Annex 1.A1. Challenges to achieving policy objectives for digital developments . 40 Annex 1.A2. Ministerial Declaration on the Digital Economy: Innovation, Growth and Social Prosperity (“Cancún Declaration”) . 41 Chapter 2. Policy and regulation . 45 Introduction . 46 Access and connectivity . 47 Usage and skills . 60 Innovation, applications and transformation . 73 Digital risk and trust . 86 Notes . 101 References . 103 Annex 2.A1. Selected communication mergers, circa USD 500 million or above, 2014-16 . 106 Annex 2.A2. Converged regulators . 107 Annex 2.A3. 2016 Roam like at home offers. 109 OECD DigitaL ECONOMY OUTLOOK 2017 © OECD 2017 5 TABLE OF CONTENTS Part II Trends Chapter 3. Access and connectivity . 113 Introduction . 114 Trends in the ICT sector . 115 Communication markets . 132 Broadband networks . 135 The Internet of Things . 147 Notes . 155 References . 156 Chapter 4. ICT usage and skills. 159 Introduction . 160 ICT usage . 161 ICT skills . 175 Notes . 190 References . 193 Chapter 5. Innovation, applications and transformation . 195 Introduction . 196 Digital innovation in business models and markets . 197 Expanding digital applications and services . 208 Digital transformation of jobs and trade . 225 Notes . 236 References . 238 Chapter 6. Digital risk and trust . 245 Introduction . 246 The role of digital risks and trust in the adoption of digital technologies and applications . 248 Trends in incidents affecting trust in the digital economy . 258 Building and reinforcing trust in the digital economy. 269 Notes . 284 References . 287 Chapter 7. Technology outlook . 293 Introduction . ..
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